Property Valuation
In Alaska, a property's effective age may be less than its actual age if:
AThe property was built before 1978
BThe property has been well-maintained or significantly renovated✓ Correct
CThe property is located in a flood zone
DThe property is in a rural area
Explanation
Effective age reflects the property's condition relative to similar properties of its age. A well-maintained or renovated home may have an effective age significantly less than its chronological age, indicating less depreciation.
Related Alaska Property Valuation Questions
- A property generates annual net operating income (NOI) of $60,000. Using a capitalization rate of 8%, the estimated value using the income approach is:
- The 'land-to-value ratio' in an appraisal is significant because it:
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- An appraisal report prepared for a federally related transaction in Alaska must comply with:
- The principle of contribution in real estate valuation states that:
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- In Alaska, functional obsolescence in a property could be caused by:
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